4wk Auction Redux
Treasury’s auction of $31bln of 4wk bills was very well-bid despite some unwinding of safe-haven bids today on the back of equity gains. The big rate cut anticipated from the FED probably enticed buyers, especially from overseas accounts.
The bid-to-cover jumped to 2.76 from 2.55 last week with the $85bln-plus of bids, while the indirect bid nearly doubled to 44.7% compared to 24.3% last week.